Reference no: EM131116863
Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation:
a. The Marketing Department has estimated sales as follows for the remainder of the year (in units):
July 30,000 October 20,000
August 70,000 November 10,000
September 50,000 December10,000
The selling price of the beach umbrellas is $12 per unit.
b. All sales are on account. Based on past experience, sales are collected in the following pattern:
30% in the month of sale
65% in the month following sale
5% uncollectible
Sales for June totaled $300,000.
c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the end of June.
d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be:
June 30 72,000 feet
September 30 ? feet
e. Gilden costs $0.80 per foot. One-half of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $76,000.
|
Demand and supply graph to shift
: Intuitively, implementation of this tax will cause which curve in our demand and supply graph to shift? Explain the direction of this shift and how this shift will impact equilibrium price and equilibrium quantity in this market once the excise ta..
|
|
Explain any sampling or other audit work that could be done
: Explain any sampling or other audit work that could be done, and if you would recommend the company pursue this additional work. Justify your response.
|
|
How did nationalism come to be such a global force
: Just a few hundred years ago, most people didn't strongly identify with the nation of which they are apart. In this discussion area, let's try to identify the main reasons that changed. How did nationalism come to be such a global force? What chan..
|
|
Externality present in the market
: How do you think we can accurately calculate the impact of an externality present in the market after watching this video?
|
|
Milo company manufactures beach umbrellas
: Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation:
|
|
Quantity theory of money and the classical cambridge
: Explain how the quantity theory of money and the classical Cambridge approach evolved into two very different approaches with regard to the demand for money.
|
|
The new staff for the upcoming tax season
: To prepare the new staff for the upcoming tax season, you have decided to hold 1-week training. Prepare a short PowerPoint presentation of 4-5 slides outlining the following:
|
|
Question regarding the benefits of eating honey
: Recently, the price of honey has risen. This must mean that the demand for honey has risen, maybe because more people are aware of the benefits of eating honey.
|
|
Do you think the punitive damages
: Do you think the punitive damages in Liebeck v. McDonald's was justified? Why, or why not? Does it make a difference that McDonald's rejected the plaintiff's settlement offer and countered with an offer of $800 or that McDonald's had already settled ..
|